Nine banking industry associations have submitted a letter to the Basel Committee on Banking Supervision (BCBS) in response to its proposal to introduce stringent capital requirements for banks looking to hold crypto assets on their books.

In June of this year, the BCBS had published a consultation paper which assigned a 1,250% risk weight to (BTC), meaning that banks would need to hold $1 in capital for each $1 worth of exposure they have to Bitcoin.